Hypocrisy Condemnedat IMF Meeting

Even financial leaders call U.S. subsidies unfair

Washington -- For all the polite nods toward the protesters
outside, those in charge of the World Bank and the International
Monetary Fund offered few apologies this weekend for the many failed
attempts to increase prosperity in the world's poorest countries.

Reflecting the views of their biggest shareholders -- governments of
the world's richest countries, led by the United States -- both
institutions continued to push poor countries to take steps to stimulate
business: privatize industry, improve financial management, embrace
free trade.

But as the two institutions wrapped up their annual meetings here
Sunday, people inside and outside the elite gathering attacked what some
described as a major hypocrisy of the rich countries; their own
continued barriers to imports, particularly of agricultural products and
textiles.

James D. Wolfensohn, president of the World Bank, accused wealthy
countries of "squandering" $1 billion a day on farm subsidies that often
have devastating effects on farmers in Latin America and Africa.

Stanley Fischer, who was the Fund's deputy managing director in the
1990s, said protectionist policies by the United states, Europe and
Japan were "scandalous."

Oxfam International, a non-profit group focused on world poverty
problems, issued a scathing report in which it charged that subsidies to
big U.S. cotton farming operations were wiping out African rivals.

The criticisms are not new. But they are more intense this year, and
they carried a special sting for the United States. Earlier this year,
Congress passed, and President Bush signed, a bill that authorizes more
than $100 billion in farm subsidies over the next eight years.

"It is hypocrisy to encourage poor countries to open their markets
while imposing protectionist measures that cater to powerful special
interests," said Nicholas Stern, chief economist of the World Bank.

Stern estimated that the average cow in Europe receives about $2.50 a
day in subsidies, and the average cow in Japan receives nearly $7 a day.
By contrast, he said, 75 percent of the people in sub-Saharan African
live on less than $2 a day.

The Bush administration agrees in principle with the goal of reducing
subsidies, which encourage overproduction and tend to depress prices, as
well as tariffs and quotas that block imports.

Protectionism in wealthy countries has a disproportionately large
effect on poor countries, because the biggest barriers are on farm
products and labor-intensive products like textiles.

Protesters had sought to disrupt the discussions by shutting down the
capital. Their efforts fizzled in the face of poor turnout and an
overwhelming police presence.

San Francisco Chronicle, September 30, 2002The Associated
Press contributed to this report.